@Nathan Gesner He stated he "contacted an agent".

Knowledge and experience is what matters, and credentials do not guarantee it.As I already told you on your other post - there is no creativity with 121 after the 3-yr window lapsed.

Probably the best way are good old fashioned letters (foreclosure, out-of-state absentee owners, dilapidated properties, etc.) 

I'd also go by the home and post a notice of an inspection-you never know something could have happened to them (either they left, are sick).

So I am considering two options:(1) HIre a contractor to hand off to finish the project.(2) Sell it as-is.If I go with option #2, obviously it cannot be a normal sale as the property is not habitable in it's current state, so cannot be mortgaged nor insured. 

*This post does not create a CPA-client relationship.

State a max lease duration if your concern is that you will actually wind up with a long term rental with Susie and Susies boyfriend. 

They compose yearly repair rates for all major appliances they service based on their own service call numbers.I am just posting this info for everyone to read about these units.

In this case, again depending on state and local laws, you may be able to apply the deposit towards unpaid rent. 

There are a couple of FB groups with thousands of members for this market, with wholesalers posting houses all day long.